China Firm to Buy Half of Weatherly for $26.8 mln

LONDON, Sept. 17 -- African copper (LSE: ACU.L - news) miner Weatherly International Plc agreed a deal worth 16.1 million pounds ($26.81 million) with a Chinese firm that will take a controlling 50.1 percent stake and will allow the firm to reopen shut mines, the firm said on Tuesday.

    London-listed Weatherly said in a statement it had signed a letter of intent to issue 446.8 million new shares at 3.6 pence each to a wholly-owned subsidiary of East China Mineral Exploration and Development Bureau (ECE).

    Weatherly shares closed at 3.425 pence on Monday.

    Weatherly shut down all four of its copper mines in Namibia in December 2008 due to low prices and has been considering strategic options. It also owns a smelter in Namibia.

    'ECE has recognised the value inherent in Weatherly's asset base and management team and are prepared to invest heavily to obtain a controlling position in the company,' Chief Executive Rod Webster said.

    The deal will allow Weatherly to reopen its Otjihase and Matchless mines to take advantage of increased copper prices, he added.

    It will also provide funds for the development of the Tschudi open pit copper project.

    The deal is due to be completed before the end of January 2010.

    (Source: Reuters)